One reader took exception to something we said Tuesday: “Given how connected our economies are, especially among developing countries, this divergent trend’s surprising.”
The reader says:
“Why is this so surprising?
“We have put a business man in charge while they are still hamstrung by being led by politicians.
We think it’s obvious global economies are inextricably connected. A pebble dropped at the NYSE has a ripple effect felt in South America, the EU, Asian markets and beyond — regardless of who’s in the oval office.
This week, as the U.S. markets took a dive, the European and Asian markets experienced their own ruthless selloff, setting them up for their worst week since February.
You’ll recall the U.S. markets experienced their own worst week since February.
As our markets floated higher yesterday, the MSCI All Country World index that tracks 47 countries, gained a half-percent. Marginal but it’s a gain.
More evidence? The same variables that weighed on U.S. markets this week — trade-war jitters and interest-rate hikes — have dragged down global economies this year.
We appreciate your feedback.
Your Rundown for Friday, October 12, 2018…
Odds-On Favorite: Hi Tech Telecom
It’s been a bumpy ride for the market this week. Most especially the Dow that tanked over 800 points Wednesday.
A few stocks managed to get off the roller coaster — more or less intact. One of them: Verizon (VZ).
The past two days, Verizon shares shed about 3%; that’s worth mentioning compared to the Dow and S&P that lost about 5%.
Another reason to like the stock is its decent dividend yield and, late last week, Verizon’s outperformed the S&P 500.
Verizon shares have gained 7.5% year to date. Premarket today, Verizon’s up another 1%.
What’s pumping shares higher this month is on Oct. 1, Verizon launched the first 5G broadband internet service in four U.S. cities — Houston, Indianapolis, Los Angeles and Sacramento.
It’s also at the leading edge of other services, including connected vehicle and fleet, Internet of Things (IoT) and smart-city services.
This morning we read that Verizon’s partnering with a former cell-phone pioneer that’s been sidelined — if not forgotten in the U.S. — of late.
“Nokia is a name that had all but disappeared from the smartphone market in the US until HMD Global acquired it in 2016,” says an article at AndroidPolice.
The Nokia brand has already captured a significant portion of the European mobile market and it’s looking to compete with its Nokia 2.1V model in the U.S. mid-range Android space.
So Verizon…a defensive stock you’ll want to take a look at. While you’re at it, follow up on Nokia (NOK). A Friday “twofer”.
Market Rundown for Fri. October 12, 2018
S&P 500 futures are up this morning by 43 points to 2,772.37.
Oil’s added almost 50 cents to its price: $71.41 a barrel.
Gold is down to $1,224.60.
Bitcoin up roughly $54 to $6,263.46.
Have a great weekend. We’ll catch up Monday.
For the Rundown,